WAKEFIELD, Mass.--(BUSINESS WIRE)--Franklin Street Properties Corp. (the “Company”, “FSP”, “our” or “we”) (NYSE American: FSP) announced today that its Board of Directors declared a quarterly dividend of $0.01 per share of common stock for the period April 1, 2022 through June 30, 2022, payable on August 11, 2022 to stockholders of record as of July 19, 2022.
In addition, FSP announced today that its Board of Directors has adopted a variable quarterly dividend policy, which replaces its previous regular quarterly dividend policy. Under the new variable quarterly dividend policy, the Company’s Board of Directors will determine quarterly dividends based upon a variety of factors, including the Company’s estimates of its annual taxable income and the amounts that the Company is required to distribute annually in the aggregate to enable the Company to continue to qualify as a real estate investment trust (REIT) for federal income tax purposes. We anticipate that both ongoing, recurring rental operations and transactional property disposition activity will be significant factors considered by the Company’s Board of Directors in determining the amount of any particular quarterly dividend under the variable quarterly dividend policy.
George J. Carter, Chairman and Chief Executive Officer, commented as follows:
“We continue to view the payment of dividends as an essential component of total return for our stockholders. Our objectives for 2022 remain unchanged: We will seek to increase stockholder value (1) through the potential sale of select properties and use proceeds for debt reduction, repurchases of our common stock, any dividends required to meet REIT requirements, and/or other general corporate purposes and (2) by striving to increase occupancy in our continuing portfolio of real estate. We believe that the new variable quarterly dividend policy better aligns with the transactional nature of our 2022 objectives, resulting in a more precise and flexible capital allocation platform.”
This press release, along with other news about FSP, is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.
About Franklin Street Properties Corp.
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.
Forward-Looking Statements
Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements, such as those relating to the payment of dividends that are based on current judgments and current knowledge of management and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, fluctuations in our real estate occupancy levels, rental rates and property disposition levels and changes in interest rates and the mix of our fixed and variable rate debt, all of which may result in significant variability in our taxable income. As a result of these fluctuations, the amount of cash available for distribution to our stockholders under our new variable dividend policy may fluctuate, which may affect the rate of any such dividends in future periods. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. We cannot guarantee future results, levels of activity, acquisitions, dispositions, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.
